Nama : Tasya Novaliana Utomo

NIM : 2301937942
Jurusan : Accounting

Summary Seminar Blockchain and its Impact on Finance and Accounting

Blockchain is currency or cryptocurrency (Digital Asset). There are type of
Blockchain.Public blockchain that grant access to read and ability to create a transactions to
any user on that network. This type is mostly used for cryptocurrencies (e.g Bitcoin,
Ethereum). Private blockchain that partially decentralized blockchain, where the consensus
process is controlled by a preselected set o nodes. Private blockchain limits not only the write
access bu the read access as well, to spesific participants who can verify their transaction
internally.
What is blockchain ? a system that spreads the ownership of a ledger across multiple parties,
each with their own copy, instead of being held centrally. Blockchain is fundamentally an
accounting technology. Blockchain works in several ways , example of illustrations :
1. Alice wants to send money to Bob.
2. The first block is created online and represent the transactions
3. This block is broadcast to every party in the network
4. Those in the network approve the transaction and validate it
5. The block is then added to the chain which provides a permanent- non repudiable and
treansparent record o the transactions
6. Bob receives money from the Alice
The advantages of blockchain ledgers : Decentralized = Blockchain technology allows the
digital ledger to be distributed to many different nodes which therefore removes the need for
the transaction data to be processed and stored by a sole third party. Secure = It uses
encryption to secure the transaction ledger so that only individuals with a unique key code
can gain access to the data. The fact that blockchain transactions are peer to peer and are as
such decentralized, means that they are far more secure. Despite its popularity, bitcoin has
never been hacked beause blockchain technology makes this next to impossible.
Blockchain key features : Propagation = new transactions originate with one user but
propogate to a network of identical ledgers, without a central controller, Permanence = all
transactions and records are permannet, unable to be tampered with or removed and
Programmability = many new generation blockcahains are programmable, allowing for
automation of new transactions and controls via smart contracts.
Blockchain consensus, consensus drives fair participation in a business network with
democracy. Proof of work, where the algorithm rewards minners who solve mathematical
problems with the oal or validating transactions and creating new blocks. Proof of sales, the
creator of a new block is chosen in a deterministic way, depending on its wealth, also defined
a stake.
Blockchain in Accounting : Using the blockchain makes it possible to prove integrity of
eletronic files easily. One approach is to generate a hash string of the file. That hash string
represents the digital fingerprint of that file. Next, that fingerprint is immutably timestamped
by wiriting it into the blockchain via a transaction. Instead of keeping separate records based
on transactions receipts, companies can write their transactions directly into a joint register,
creating an interlocking system of enduring accounting records. Since all entries are
distributed and cryptographicnally sealed, falsifying or destroying them to conceal activity is
partically impossible. It is similar to the transaction being verified by a notary- only in an
eletronic way.
Blockchain in Finance : Remittance = there are already a numver of companies that are
operating blockchain based international transfer services. These include Abra, BitPesa and
Circle, Payment gateway = a recent succesful ICO by startup mycelium brought attention to
how blockchain could be used to facilitate next-generation payment systems. The company
goal is to bring merchants and consumers together with a blockchain crad and mobile wallet.
Trade Finance, the automation of transactions essential to trade finance will help the financial
services industry make huge savings after blockchain solutions are introduced.